Mainland stocks rose on Monday as memory chipmaker CXMT Corp's roughly six-fold surge on its debut lifted investor sentiment after a bruising recent selloff in tech shares.

In Hong Kong, the benchmark Hang Seng Index ended 243 points, or one percent, higher at 25,207 on turnover of HK$210.5 billion.

The tech index was up 72 points, or 1.6 percent, at 4,702 while the China enterprises index was 94 points or 1.1 percent, higher at 8,365.

Tourism, tech and consumption stocks led gains while energy and AI stocks fell.

On the mainland, the Shanghai Composite Index ended 44 points, or 1.15 percent, higher at 3,858 on turnover of 1.03 trillion yuan.

The Shenzhen Component Index was 374 points, or 2.72 percent, up at 14,148 on turnover of 1.04 trillion yuan while the ChiNext Index was 109 points, or 3.16 percent, higher at 3,590 on turnover of 480.78 billion yuan.

CXMT's first-day performance, which made it the biggest mainland-listed company by market value, also stirred worries over its valuation and the sustainability of the market rebound.

"CXMT is China's chipmaking giant, and its listing will breathe vigour into a swathe of companies in its supply chain," said William Xin, chairman of Spring Mountain Pu Jiang Investment Management, who bought newly-issued shares from CXMT's US$8.6 billion offering last week.

However, he sold them all at market open after the jump in CXMT shares exceeded his expectations.

"How the stock performs over the next few days will greatly impact market mood," he said.

The nation's large-cap CSI300 Index too gained about one percent as investors overcame fears that CXMT's mega-listing could drain market liquidity.

The steady performance of mainland and Hong Kong stocks could offer some respite to Chinese regulators, who have rolled out a raft of measures to stem a rout that has wiped out more than US$1.5 trillion in market value this month.

Selling had been especially savage in small-caps and tech shares, following a global selloff in chip stocks and a stampede for the exit by local quant funds.

In the face of CXMT's debut, "the market reaction has been fairly calm," said Zeng Wenkai, chief investment officer at Hong Kong-based Shengqi Capital.

"With CXMT's successful listing now behind us, the broader tech sector will need a new narrative to drive it forward."

Bian Huizong, a veteran trader, said that although CXMT's mega IPO sucked liquidity out of the market, the proceeds will be ploughed into capacity expansion, benefiting upstream suppliers.

An index tracking chipmaking materials and equipment rose on bets such companies will benefit from CXMT's investment.

But chipmaking and semiconductor stocks fell as CXMT, which vaulted to over three trillion yuan in market value, crowded out money flows into rival stocks.

Yuan Yuwei, hedge fund manager at Trinity Synergy Investments, said CXMT's share price is too expensive, boding ill for the broader market.

Elsewhere, China's entertainment, biotech and battery stocks rose, while consumer electronics and utility stocks fell.

In Tokyo, the Nikkei ended 320 points, or 0.5 percent, at 64,931, after fluctuating between gains and losses. The broader Topix rose 54 points, or 1.37 percent, to 4,066.

In Seoul, the Kospi South Korean shares closed up 65 points, or 0.97 percent, at 6,755, after falling as much as two percent and rising as much as 1.7 percent, as chipmaker heavyweights rebounded with second-quarter earnings in focus. (Reuters/Xinhua)




Edited by Tony Sabine